Demand for environment, social and governance (ESG) talent in Mainland China will boom in the next five years, according to a survey by professional accounting body, CPA Australia.

CPA Australia surveyed over 400 accounting and financial professionals across industries in the Greater China region, including 139 respondents from Mainland China.

Most, or 88% of surveyed Mainland Chinese accounting and financial professionals expect local demand for ESG talent to increase in the next five years.

Meanwhile 74% of respondents expect accountants will play a key role in achieving carbon emission reduction commitments in Mainland China.

Deborah Leung FCPA (Aust.), Executive General Manager International of CPA Australia said, "The results clearly reflect Mainland Chinese businesses' growing focus on ESG."

"Accounting and financial professionals play a critical role as enablers of environmental protections and promoting ESG in the capital market,” Leung said. “They are qualified to provide deep business insights about sustainability risks and opportunities, support green finance, and help improve disclosure mechanisms and policy frameworks.”

According to the survey, there is a market shortage of skills and understanding of ESG. The majority, or 89%, of Mainland Chinese respondents stated that they were looking forward to participating in ESG-relevant training courses in the coming 12 months.

“We suggest that accounting bodies, research institutions, universities and businesses collaborate in nurturing ESG experts across the finance and accounting sectors in Mainland China,” Leung said. "With more requirements on ESG information disclosures being issued globally and more investors considering ESG performance as an indicator to evaluate a company, and as a key consideration in their investment strategy, we believe this is a huge opportunity for accounting and financial professionals with solid ESG knowledge and skillset in the future.”